The US Bureau of Labor Statistics (BLS) is predicting the insurance industry will lose 400,000 jobs by 2026. That’s a huge number, and a big concern when you consider that’s two years and just over one month away.
Combined with that report is information that the hiring rate in the industry is slowing — considerably. October saw a hiring slowdown and only 1,100 positions were filled. That compares to September’s 3,9000 and July’s 8,300. Most affected in October were personal lines writers.
The numbers don’t worry AM Best analysts. “The recent layoffs would more likely fall into the cyclical, rather than the structural, category,” they said.
Those are the numbers currently. The 400,000 job loss prediction is in the future and is a bit more dire. The reasons The BLS gives vary and start with huge numbers of people retiring and finding someone to replace them is uncertain.
Interpreting the BLS numbers, RSM Consulting says customer preferences are rapidly changing. More people are — inadvisedly — grabbing insurance online rather than from agents and agencies. Then there’s AI and big technology changes.
Regulations are also impacting jobs.
RSM says these issues need to be addressed, and addressed quickly. Disadvantages in competition, problems with day-to-day operations, difficulty retaining customers and other issues will cause income issues and could lead to more draconian regulations.
While RSM talks quickly, the industry has — for the last couple of decades — been moving quickly. Over half of the nation’s insurance providers are actively seeking people with the main focus being data analytical skills. This is designed to propel insurers deeper into the digital age where innovation is supposed to enhance customer experiences.
And since we’re already deep into the digital age, having skilled, and experienced people in those positions is essential to keep companies from experiencing too many fraudulent claims, and risks the company ought not assume.
RSM senior analyst, Marlene Dailey said these are items that can critically impact the company’s reputation and financial performance.
“Data analytics, cybersecurity and digital marketing are skills we expect to be in especially high demand as workforce pressure continues,” she said. “But data-related skills, in particular, will be paramount for various business functions of insurers.”
Source link: Insurance Business America — https://bit.ly/3R9WJ0T